Elbit Systems (ESLT) Q1 2025 earnings summary

Executive summary

• Achieved fourth consecutive quarter of double-digit growth in revenues, operating income, net income, and EPS, driven by increased global defense demand and ongoing conflicts.

• Backlog reached a record $23.1 billion, up 40% year-over-year, with 66% from outside Israel and 51% scheduled for delivery in 2025-2026.

• Maintains a global presence with approximately 20,000 employees and subsidiaries in multiple countries.

• Ranked 22nd in Defense News Global 100 Defense Companies in 2024.

• Free cash flow for Q1 2025 was $161 million, reflecting strong operational performance.

Financial highlights

• Q1 2025 revenues were $1.90 billion, up 22% from $1.55 billion in Q1 2024.

• 2024 revenues grew 14% to $6.8 billion from $6.0 billion in 2023.

• GAAP operating income was $149.7 million (7.9% margin), up from $105.4 million (6.8%); non-GAAP operating income was $165.1 million (8.7% margin), up from $121.6 million (7.8%).

• GAAP diluted EPS was $2.35 (vs. $1.65); non-GAAP diluted EPS was $2.57 (vs. $1.81).

• Free cash flow reached $161 million in Q1 2025; 2024 free cash flow improved to $320 million from $(73) million in 2023.

• Dividend of $0.60 per share declared for Q1 2025.

Outlook and guidance

• No slowdown expected in defense investment in Israel or Europe, even if regional conflicts subside.

• CapEx for 2025 expected to be around $250 million, up from $215 million in 2024.

• Iron Beam land solution expected to be operational by end of 2025, with airborne solution in development.

• Management expects continued benefit from rising global and European defense budgets, supported by strong subsidiaries and contract wins.

• Continued focus on organic growth, R&D, and capital investment to support expansion.